The Five Most Successful Stocks in the S&P 500 Index during January 2025
In the opening salvo of 2025, the S&P 500 continued its upward trajectory, clocking in an impressive 2.7% gain in January. Some stocks didn't keep pace with the index's surge, but others soared, including the top five performers.
Leading the pack was Robinhood Markets, whose shares skyrocketed an astonishing 39.4% following the resolution of the Securities and Exchange Commission (SEC) investigation into securities violations. The penalties agreed upon by Robinhood, totaling $45 million, gave investors much-needed clarity, sparking a joyous rally.
Moving down the list, Twilio jumped an impressive 35.6% due to positive investor sentiment post-Investor Day. The software company, which supports artificial intelligence developers, projected positive operating income for 2025 and forecasted more than $3 billion in free cash flow from 2025 to 2027.
Constellation Energy surged 34.1% after announcing plans to acquire Calpine, an electric utility with robust clean energy assets. The news sent the utility stock soaring by 25% the very same day.
CVS Health gained 25.8% on the heels of a Medicare Advantage payment increase proposal by the Centers for Medicare and Medicaid Services, coupled with a positive outlook from Evercore ISI who hiked its price target to $65 from $60.
Rounding off the top five was GE Aerospace, whose shares lifted investors' spirits on the back of strong financial results. The company reported a 14% increase in revenue and a 21% surge in free cash flow in Q4 2024, along with an optimistic 2025 forecast that included continued free cash flow growth.
But, are these S&P 500 stars a worthy investment consideration for potential investors? Absolutely. Each of these industry leaders merits a closer look and should align with your individual investment objectives.
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Robinhood Markets (HOOD)
Robinhood's impressive performance in January 2025 was propelled by multiple factors. The company reported a remarkable 99% year-over-year increase in Assets Under Custody (AUC) to $204 billion and a 51% increase in net deposits to $5.6 billion[1][5]. Additionally, Robinhood maintained high EBITDA margins, which played a significant role in its strong performance[2]. The acquisition of Bitstamp is anticipated to add approximately a 40% boost to the company's cryptocurrency trading volumes, bolstering overall volume growth[2].
Constellation Energy (CEG)
Constellation Energy's performance in January 2025 was predominantly driven by three factors. The company secured a substantial 10-year, $840 million deal to supply carbon-free energy to 80 federal facilities. This arrangement guarantees steady revenue streams for the next decade[3]. Then there's the acquisition of Calpine, which came in at a whopping $16.4 billion stock and cash transaction. This deal consolidates Constellation Energy's position as a clean energy leader and is expected to be immediately accretive to earnings and cash flow[3]. Lastly, Constellation Energy benefited from growing speculation about increased energy demand from data centers supporting the AI infrastructure boom[3].
CVS Health (CVS)
CVS Health's January 2025 gains can be attributed to several factors. After a significant selloff at the end of 2024, the stock began to recover due to investor optimism and smaller developments[3][4]. The company also announced a quarterly dividend of 66 cents per share, maintaining investor confidence. Furthermore, speculation regarding increased healthcare services, medical supplies, and pharmaceutical demands following the Los Angeles wildfires fueled the stock's rise[3][4].
GE Aerospace (GE)
The specific factors driving GE Aerospace's performance in January 2025 were not detailed in the sources provided.
- Investors who are considering diversifying their portfolio might find the impressive performance of S&P 500 stars like Robinhood Markets appealing, given its 39.4% surge following the resolution of the SEC investigation and the 99% year-over-year increase in Assets Under Custody.
- Those interested in the tech sector may find Twilio an intriguing investment option, as its shares jumped 35.6% due to positive investor sentiment after Investor Day and the company's projected positive operating income for 2025.
- Finance enthusiasts might be drawn to Constellation Energy, whose shares surged 34.1% after announcing the acquisition of Calpine and securing a substantial 10-year energy deal worth $840 million with federal facilities.
- CVS Health's stock gains of 25.8% could pique the interest of investors looking for growth in the healthcare sector, particularly with the Centers for Medicare and Medicaid Services proposing a Medicare Advantage payment increase and Evercore ISI raising its price target to $65.
